Costs rise at fastest pace since 1997 as demand booms
Strong demand has contributed to construction costs rising at the fastest pace for 24 years, according the latest Purchasing Managers’ Index.
Activity in April stood at 61.6, only a fraction below the six-and-a-half-year high of 61.7 recorded in March. Firms also reported new orders rising at the fastest pace for almost seven years.
Booming work levels have led to the steepest increase in demand for workers since December 2015 and overall construction costs rising at the fastest pace since the survey began in April 1997.
Tim Moore, economics director at IHS Markit, which produces the PMI alongside the Chartered Institute of Procurement and Supply, said: “Shortages of construction materials and much longer wait times for deliveries from suppliers were a sting in the tail for the sector. Aggregates, timber, steel, cement and concrete products were all widely reported as in short supply by survey respondents.”
European Markets Close Higher On Strong Earnings, Recovery Hopes
BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European markets closed on a firm note on Friday, buoyed by some upbeat earnings announcements and eurozone economic data.
U.S. jobs data disappointed as the economy added less jobs than expected, and unemployment rose, but then, the weak data helped raise hopes that the Fed will continue to keep rates near zero for the foreseeable future.
The pan European Stoxx 600 climbed 0.89%. The U.K. s FTSE 100 gained 0.76%, Germany s DAX advanced 1.34% and France s CAC 40 ended 0.45% up, while Switzerland s SMI gained 0.56%.
Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and Turkey closed with strong gains.
Construction activity continues pacey growth but inflation fears loom
(AFP via Getty Images)
UK construction activity continued its rapid growth in April, but the burst of activity saw the rate of input cost inflation rise to its highest levels since 1997.
IHS Markit’s construction Purchasing Managers Index registered 61.6 last month, only fractionally below March’s record reading of 61.7. Any figure above 50.0 indicates an overall expansion of construction output.
Once again commercial construction work led the way, but the civil engineering sector was the most notable grower, showing its fastest increase in output since 2014.
Construction companies often cited increased levels of work on major infrastructure programmes, including contract awards from HS2 and Highways England.
Sharp Slowdown In U.S. Job Growth Drags Dollar Down The U.S. dollar depreciated against its key counterparts in the European session on Friday, as the nation’s employment increased much less than expected in April, backing hopes for a continuation of the accommodative policy by the Federal Reserve.
Data from the Labor Department showed that non-farm payroll employment rose by 266,000 jobs in April after surging by a downwardly revised 770,000 jobs in March.
Economists had expected employment to spike by 978,000 jobs compared to the jump of 916,000 jobs originally reported for the previous month.
The report also showed the unemployment rate inched up to 6.1 percent in April from 6.0 percent in March. Economists had expected the unemployment rate to drop to 5.8 percent.
London stock markets ended the week on a high, with the FTSE 250 hitting a new record and the FTSE 100 soaring back to pre-pandemic levels.
The FTSE 100 finished up 53.54 points at 7,129.71 - rising above 7,100 for the first time since February 2020, just before the pandemic struck. The FTSE 250 closed 283.92 points higher at a new record high of 22,775.28.
In company news, British Airways owner IAG posted a pre-tax loss of €1.22billion (£1.1billion) in the second quarter as passenger numbers remained low due to international travel restrictions.
Meanwhile, activist investor Edward Bramson sold his entire 6 per cent stake in Barclays. His investment vehicle, Sherborne Investors, said it had identified a new company to invest in instead that offered a better return to shareholders.